DMP 1.55% $36.69 domino's pizza enterprises limited

Yes, margin should improve back to pre Covid levels. That is...

  1. 829 Posts.
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    Yes, margin should improve back to pre Covid levels. That is minimum 2-3%. Inflation coming under control gradually in the advance economies over next 3 years, margins will stabilise at a reasonable level. This plus all the other initiatives of cost reduction, Uber tie up,store additions will push the SP up to $70 range.
    However it is still going to be only about 40% of the peak level reached few years back. I think that is reasonable compared to absurd prices investors paid.
    Good indicator is US & UK companies which has recovered by much bigger % from their highs, almost double. The reason could be Australian SP far too high at the peak to its counter parts. The reason for this could be Australian company was expanding much higher rate over last 10 years compared to US and UK.
    Now it is time DMP buckle down show the benefits of that expansion in their bottom line over next 3 years. Investors will reward as soon as the visibility of such action are seen. As the take away food and pizza in particular are stable segment of the economy. SP moved to 50+ yesterday ,from low forties over last 3 to 6 months.
 
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